If there are times when you need an advance before you can receive your paycheck, a Cash app loan money can be a lifesaver. After all, sending and receiving money from a peer-to-peer payment service is so simple. The good news is that Cash App has rolled out a lending feature for limited users. To find out if you are eligible for a Cash App loan, here is everything you need to know.
Yes, Cash App offers loans of $20 to $200, according to a 2020 TechCrunch article. Cash App tested the lending feature with the roll-out limited to 1,000 users. While the company hasn't disclosed the status of that trial, the app notes that lending is still not available to all customers.
Whether a particular customer can use this feature depends on:
The state you live in
Do you have an active cash card
Your Cash App Usage History
Your credit history
TechCrunch notes that loans are funded quickly and require you to pay them back in four weeks or less. But keeping balances for so long can add up – at the time the TechCrunch article was published, Cash App reportedly charged a flat 5% fee for borrowing, plus 1.25% per week after the grace period.
While you know that Cash App Lending is the best for quick loan repayments, the new tool - if it's available to you - can be helpful when you're short on cash.
As mentioned, Cash App Borrow is not yet available to everyone. That's the only way to know if it's available to you. To find out if you can borrow money from the Cash App, and if so, follow these steps to find out how:
Open the Cash app.
Tap on your Cash app balance in the lower-left corner.
Go to the "Banking" header.
Check the word "borrow".
If you see "Borrow", you can take a Cash App loan.
Tap on "Borrow".
Tap on "Unlock".
Cash App will tell you how much you will be able to borrow. Choose an amount.
Choose your repayment plan.
Read the User Agreement.
Accept your Cash App Borrow loan.
It is too early to analyze how safe the Cash App loan application is, but the Cash App platform itself is secure. Cash App protects your personal information and your money in a few ways:
The app integrates with your smartphone's screen lock, where PIN entry, Touch ID, passcode or facial recognition adds an extra layer of security if your phone is lost or stolen.
If you have lost your Cash App card or you can disable it for added security.
You can set up email, text or push notifications to help keep track of your activity and alert you to unusual account usage.
In what other ways can you borrow money online?
When you need money, having access to fast cash can make all the difference. Most people turn to money in an emergency savings account, borrow from loved ones or charge the expenses with their credit cards.
Fast-cash loans have their drawbacks, such as getting you into personal or credit card debt or incurring high fees. While Block (formerly Square) continues to issue Cash App loans, consider the following alternative lending options to get the money you need.
Oportun offers an "affordable alternative to payday loans" and may be best suited for borrowers with no credit history or bad credit. You can borrow between $300 and $10,000 for up to 48 months. Oportun has placed its annual percentage rate at 35.99%.
You can borrow between $1,000 and $40,000 through LendingClub. Once you've established a track record with LendingClub, you can borrow as many loans as you want at once, as long as they don't total more than $50,000.
Lending Club charges a 3% to 6% origination fee for each loan. You'll have up to five years to pay off the loan in full, but don't take too long—you'll pay an annual percentage rate of 7.04% to 35.89%.
OppLoans is another loan company specializing in bad credit loans, which bases lending decisions on a variety of factors beyond your credit score and credit history. Amounts from $500 to $4,000 are available. Repayment terms vary by state but typically range from nine to 18 months.
Although having the option to pay off the loan over a longer period takes some of the pressure off, it is important to exercise caution. The OppLoans APR on the amount you borrow is 160% in many states.
As with all bad-credit or no-credit-score loans, it's important to watch the APR. Otherwise, you could end up paying interest far more than the principal amount you borrowed.
How to Borrow Money From Cash App appears to be a good option for a short-term loan for a few bucks - if you are eligible. When considering other online lending options, consider the cost of borrowing as well as the value of the lender's terms for repayment.